Friday, August 08, 2008

Inverted Roof

It looks (to me) like an inverted roof has taken shape across all of the major indexes and we're testing a break out above resistance, which could bring us a measured move to the upside, if we could get past the major 50-period Moving Average resistance.
Volume on the break of resistance for the Dow is pretty unconvincing, but a measured move from here puts the upside at around 872 points.
The S&P500 breakout would add about 90 points to the upside. It needs to clear the 50-EMA at this point.The Nasdaq has definitively broken out of this pattern (and above it's 50-EMA) and give us a target of the 2530 area.

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